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Notes to the Consolidated Financial Statements
30 June 2013
46 BRADKEN LIMITED ANNUAL REPORT 2013
Notes to the consolidated financial statements
30 June 2013
(continued)
1 Summary of significant accounting policies (continued)
(ab) Parent entity financial information
(i)
Investments in subsidiaries, associates and joint venture entities
(ii) Tax consolidation legislation
(iii) Financial guarantees
Amendments to AASB 136
Recoverable Amount Disclosures for Non-Financial Assets
(effective for annual periods
beginning on or after 1 January 2014)
The AASB has made small changes to some of the disclosures that are required under AASB 136 Impairment of Assets. These
may result in additional disclosures if the group recognises an impairment loss or the reversal of an impairment loss during the
period. They will not affect any of the amounts recognised in the financial statements. The group intends to apply the
amendment from 1 July 2014.
AASB 2012-5
Amendments to Australian Accounting Standard arising from Annual Improvements 2009-2011 cycle
(effective for annual periods beginning on or after 1 January 2013)
In June 2012, the AASB approved a number of amendments to Australian Accounting Standards as a result of the 2009-2011
annual improvements project. The group does not expect that any adjustments will be necessary as the result of applying the
revised rules.
The financial information for the parent entity, Bradken Limited, disclosed in note 36 has been prepared on the same basis as
the consolidated financial statements, except as set out below.
The parent entity is a guarantor under the Bradken Group - Common Terms Deed Poll and unconditionally and irrevocably
guarantees payments due in connection with any financing facilities owed by any Group company.
The head entity, Bradken Limited, and the controlled entities in the tax consolidated group account for their own current and
deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand
alone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Bradken Limited also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax
consolidated group.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Bradken
Limited for any current tax payable assumed and are compensated by Bradken Limited for any current tax receivable and
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Bradken Limited under the tax
consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned
entities' financial statements.
The amounts receivable/payable are due upon receipt of the funding advice from the head entity, which is issued as soon as
practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist
with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts
receivable from or payable to other entities in the group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are
recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of
Bradken Limited.
Bradken Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
AASB 119 -
Revised AASB 119 Employee Benefits
, AASB 2011-10
Amendments to Australian Accounting Standards
arising from AASB 119 (September 2011)
(effective for annual periods beginning on or after 1 January 2013)
In September 2011, the AASB released a revised standard on accounting for employee benefits. It requires the recognition of
all remeasurements of defined benefit liabilities/assets immediately in other comprehensive income (removal of the so-called
'corridor' method) and the calculation of a net interest expense or income by applying the discount rate to the net defined
benefit liability or asset. This replaces the expected return on plan assets that is currently included in profit or loss. The
standard also introduces a number of additional disclosures for defined benefit liabilities/assets and could affect the timing of
the recognition of termination benefits. The amendments will be implemented retrospectively. The Group will adopt the new
standard from 1 July 2013.
There are no other standards that are not yet effective and that are expected to have a material impact on the group in the
current or future reporting periods on foreseeable future transactions.
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Bradken Limited